HDFC to raise up to ₹8,000 crore via bonds; check details here

Mortgage lender Housing Development Finance Corporation (HDFC)would issue bonds through a private placement to raise up to ₹8,000 crore and strengthen its financial position.

Unsecured redeemable non-convertible debentures (NCDs) with a base size of ₹3,000 crore and an option to retain over-subscription of up to ₹5,000 crore would be issued.

According to HDFC in a regulatory filing, the issue's objective is to increase the Corporation's long-term resources.

The largest mortgage lender in the nation declared that it will use the issue's proceeds to refinance or fund the needs of its housing finance company. The bond issue closes on May 15, 2023, it said.

The bonds would have a coupon of 7.70% per year from HDFC, which is currently getting set to merge with its subsidiary HDFC Bank.